Good News: Dollar Headed Down

Includes: DIA, QQQ, SPY, UDN, UUP
by: Howard Richman

In late May and early June, the dollar bounced off temporary lows of .70 euro and 94 yen. But now it is much lower and appears to be heading downward. The data shown in the graphs below (downloaded from shows that the dollar, at .68 euro and 90 yen, has broken through its previous support levels.

Click to enlarge

Click to enlarge

If the dollar continues to fall, the U.S. manufacturing sector should recover and increased exports will lead the US economy out of the current recession.

Disclosure: No positions